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New U.S. Auto Sales Plunge in September / Average Monthly Payments Hit New High - $525
“ ... auto sales numbers for September are in and, as expected, it has been an extremely ugly month for car makers. Results from Ford, Honda, Nissan, Toyota and Fiat all tell the story of an industry that had a terrible month, with few silver linings. Three of these names posted double digit percentage declines in YOY sales and three of them missed analyst estimates.”
Yes there is. However, the September 2019 news is even worse than a year ago. It’s so grim I was reluctant to link it at first. Afraid it might trigger a steep market selloff.
One may view local tv ads to get a sense of what types of vehicles, dealers and incentives from a given auto company to help determine the "flow" of sales. And to know that these monthly payment numbers may based on mostly really low loan rates, perhaps spread over up to 72 months. And the lease deals that keep being offered. 'Course, many of those lease deals return to the used inventory after 2 or 3 years. YIKES. I'm sure the auto companies smile every time there is major storm flooding in the U.S. A few more new replacement sales here and there, eh? No new model year vehicle purchases at this house.
“And to know that these monthly payment numbers may based on mostly really low loan rates, perhaps spread over up to 72 months
In northern MI there appears a “disconnect” between the mean income levels (just based on observation) and the number of relatively new $35,000 - $50,000 pickup trucks rolling about on our crumbling roadways (also based on observation). One assumes the majority of these must be leased or financed at those $525+ a month payments. Than, of course, the lender or leasing party requires these vehicles carry insurance. Already steep insurance rates will be even higher with these shiny new high-ticket vehicles. Must be a terrible strain on many family budgets.
I’m waiting for 0% loan offers before I buy my next car. I qualified for 0% on my last car and it saved me a lot of money in finance charges plus I could keep more money invested. The local dealers are discouraging, however. All they seem to stock are fully loaded models but I don’t need or want all the bells and whistles. What’s the point of a sunroof anyway? Seems like another thing with potential to break, and I don’t want the extra sunlight in my car.
The WSJ had an article yesterday about how auto loans are now being stretched to 7 years .. thus suggesting folks are either having trouble paying for vehicles and/or are buying more vehicle than they can comfortably afford. Either way, not a good sign.
Comments
Here it is: “Grim Start to U.S. Auto Sales Stirs Alarm That Collapse Is Here”
https://www.bloomberg.com/news/articles/2019-10-01/toyota-typifies-ugly-month-with-16-slide-auto-sales-update
I'm sure the auto companies smile every time there is major storm flooding in the U.S. A few more new replacement sales here and there, eh?
No new model year vehicle purchases at this house.
In northern MI there appears a “disconnect” between the mean income levels (just based on observation) and the number of relatively new $35,000 - $50,000 pickup trucks rolling about on our crumbling roadways (also based on observation). One assumes the majority of these must be leased or financed at those $525+ a month payments. Than, of course, the lender or leasing party requires these vehicles carry insurance. Already steep insurance rates will be even higher with these shiny new high-ticket vehicles. Must be a terrible strain on many family budgets.
The WSJ had an article yesterday about how auto loans are now being stretched to 7 years .. thus suggesting folks are either having trouble paying for vehicles and/or are buying more vehicle than they can comfortably afford. Either way, not a good sign.